The state's anti-illegal immigration law will be fully effective July 1 with the requirement that all businesses verify the legal status of their workers and face penalties for hiring illegal immigrants.

Adrienne Youmans, director of the state Department of Labor, Licensing and Regulation, said Thursday the agency will use $2 million out of its budget this year to check up on businesses. After July 1, the 110,000 companies in the state with fewer than 100 employees will be subject to the new employment verification standards.

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The new standards were effective this time last year for the 2,300 businesses that employ more than 100 workers. Youmans said the agency audited more than 1,850 of the large companies and found 92 percent to be in compliance with the law.

Last year, the agency fined 159 companies $550,000 for various violations of the law, but the fines were waived for all but one business due to a provision in the law that allows businesses 72 hours to correct the problems for a first offense.